Robert Heseltine, chairman of the Yorkshire Dales National Park, has been arrested and bailed by police over alleged offences of deception.
Councillor Heseltine, 55, of Skipton, Yorkshire Dales chairman for 11 years, has been questioned by North Yorkshire police following a probe by park officers into claims for expenses and travelling.
Police swooped yesterday after papers were handed to detectives by national park bosses in February.
A police spokesman said: "A 55-year-old man was arrested in connection with alleged deception. He has been bailed to Skipton police station in July.''
North Yorkshire County Councillor Heseltine, who has not been charged, refused to talk about his arrest and issued a statement from his solicitors. It said: "The internal auditors of the national park authority and North Yorkshire County Council have been carrying out routine checks which have raised questions on expenses claims.
"The matter was reported to the police who have interviewed Mr Heseltine but no charges have been put. Mr Heseltine is quite satisfied there is a full and complete answer to the queries and is co-operating with police.
"Mr Heseltine's position as a councillor is not affected and he will continue with his public duties."
He is due to chair the national park authority at its next meeting on Tuesday May 25.
A national park spokesman said: "Our investigation went back to April 1997 when the new independent national park was set up.''
National Park chief executive Heather Hancock said "This is distressing and disturbing. Our aim will be to continue with business as usual and to await the outcome of the police investigation.''
National park member Jerry Pearlman said today: "I find the arrest absolutely astonishing. I was aware there was an audit but I had no idea there was a complaint against Mr Heseltine.''
Councillor Heseltine has been a member of the national park since 1977. He represents Skipton East on the county council and the Bolton Abbey ward on Craven district, where he has been a councillor since 1984.
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